Faculty of Business Administration

UNESCO Department for Business Administration

CRM through electronic channels &

Regaining customers

Lecturer Ph.D.
Course 12 Professor Ph.D H.C.
Cătălin Valeriu Curmei Nicolae Al. Pop

Professor Ph.D
Mihaela-Cornelia Dan
Social CRM

§ Emergence of the social web and peer-to-peer networks/conversations increasingly

influence how customers interact with each other and how businesses use the social
media tools to manage customer relationships

§ Popular Social Media Channels

§ Blog
§ E-mail
§ Social networking Platforms
§ Podcasts and Internet Radio
§ Mobile Application
§ Viral Videos
§ Social Coupons

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Social Media Channels
§ Blogs
§ Increase in number of blogs
§ 300,000 in 2003 to 112 million in 2008
§ Blogsphere has become a key marketing platform to improve efficiency in
communications, customer service, and brand marketing
§ Blogs became an important medium that marketers can channel favorably to
promote their products, services, and brands

§ E-Mail
§ Most cost-effective marketing tools
§ High ROI (yield $45.06 for every dollar spent in 2008)
§ Highest frequency out of all clicking marketing formats
§ Benefits include timing, accessibility, and customizing

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Social Media Channels
§ Social networking Platforms
§ Substantial growth over the past 5 years
§ High potential marketing and CRM toll
§ Studies show a direct positive correlation between the use of social networking
for customer acquisition and growth in revenue
§ Benefits:
§ Identifying and targeting micro-segments of consumers
§ Starting dialogs with consumers
§ Raising and improving brand awareness
§ Podcasts & Internet Radio
§ Useful to marketers in segmenting and customizing their messages on an
individual basis

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Social Media Channels

§ Mobile Application

§ Mobile Applications are gaining a greater share of users’ time commitment than
the web is
§ Benefit: allows marketers to cater to specific customer segments with targeted
mobile applications
§ Challenges: marketers need to constantly update or replace the application with
more relevant offerings

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Social Media Channels

§ Viral Videos
§ Emerged as a user-driven method of communicating
§ Exhibit the potential for marketing and promotions
n Many brands use viral videos to strengthen brand awareness and
brand association

§ Ex) Dos Equis “The most interesting man in the world

§ Social Coupons
§ Digital coupon is growing at an exponential rate
§ Customer acquisition method for business
§ New product/brand research portal for customers

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Social CRM Strategies
§ Social Strategies – Not Social Tools
§ Need to focus on creating adaptable social platform rather than focusing on
available tools

§ Social tools evolve and change constantly

§ Social computing and interactions are becoming more essentia
§ Implementation: Task-specific
§ Utilize a social media tool because of a need or a purpose
We’re on Facebook, in order
We are on Facebook to achieve ABC, which we will
accomplish by XYZ

§ Social CRM has very few recognized and recommendations to implement

§ Still in the infant stage of its life cycle
§ Few successful implantation:
§ Trial and error and fast follower strategy
Source: Kumar V., Reinartz Werner - Customer Relationship Management
Database CRM
§ CRM needs more cost-efficient digital platforms for using, accessing and constantly
updating the databases
§ Cloud Computing
§ Allows for more accessible and customizable implementation of CRM pratices
§ Allows for remote access and real time updating in order to keep up with the
dynamic and evolving nature of databases
§ Applied easily and are economical without any infrastructure or maintance obstacles
§ Privacy Issues and Concerns
§ Accessibillity of web-based platforms cause concern for privacy issues
§ Online companies place web bugs called „cookies“ in users‘ computer to acquire
user information
§ Online marketers and researchers should reassure customers and participants about
the security of their personal information
Source: Kumar V., Reinartz Werner - Customer Relationship Management
Conclusions

§ CRM is undergoing significant changes with growing trends of social CRM, GCRM,
and cloud computing

§ Development in speed, reliability and spread of information channels such as Social

Media have effected B2C and gradually influences B2B

§ CRM database management has grown tremendously from an aggregate level to

individualized and customized level that can be applied globally via cloud computing

§ Advancement of CRM have given rise to privacy issues and concerns such as identity
theft, privacy right violations, cyber stalking

Source: Kumar V., Reinartz Werner - Customer Relationship Management

Regaining customers...

“... comprises the planning, implementation and

control of all the measures taken by the company to
retain customers who want to renounce to the
relationship with the company in question or to
regain customers who already interrupted the
relationship with the company.”
(Source: Frank Sieben)
Objectives of regaining customers

Management objectives
to regain customers

Regaining
customers who Avoiding the
Obtaining
renounced to the creation of
Minimizing the information to
company and acquisition costs
damage caused prevent other
maintaining a to replace
by negative customers from
profitable customers who
propaganda leaving
relationship with renounced
the customers
Management process to regain customers
(1)

Identifying customers

Individual analysis to regain customers

Individual measures to regain customers

Classification of regained customers

Management process to regain customers
(2)

Sleeping customers Former customers

(they were once active, (they have ceased the

Period but in the meantime they business relationship for
between the are purchasing sporadically) some time and are no
longer active)
moment they
renounced
and the one Customers who Customers who
when they have outsourced have ceased the
were regained predominant parts business relation
of their business (they communicated
directly and by offering
volume arguments that they want to
(migrants) cease the business relation)

Forms of renunciation
Management process to regain customers
(3)
• Value analysis of candidates who should be regained:
It is determined based on customer value whether regaining the
customer is worthy or not.
• Analysis of renunciation reasons:
information about the reasons for renunciation are essential for
implementation of regaining measures.
• Analysis of the needs of candidates who should be regained:
analysis of the current needs of candidates who should be
regained serves for taking appropriate measures
Management process to regain customers
(4)
Financial incentives Example

Direct monetary - Price discounts

Indirect monetary - Additional free services for

customers

Immaterial stimuli Example

Related to services - Changing services that are neutral in

terms of costs

Related to communication - Excuses

- Explanations
- Argumentation on utility
 Thank you!

catalin.curmei@fabiz.ase.ro

catalin.curmei@mk.ase.ro